Geopolitical tensions weigh on Stellar as bears target key support levels

Key takeaways

• Stellar (XLM) extends losses as renewed U.S.-Iran tensions fueled a risk-off market environment.
• XLM is currently hovering near critical support around $0.177.
• XLM could test support near $0.173 if selling pressure intensifies.

Stellar (XLM) remains under pressure on Tuesday as investors reduced exposure to risk assets following escalating geopolitical tensions between the United States and Iran.

The broader cryptocurrency market weakened after renewed military developments in the Middle East increased uncertainty, pushing investors toward safer assets while weighing on altcoins.

US-Iran escalation dampens investor confidence

According to reports, the U.S. Central Command (CENTCOM) confirmed that American forces carried out additional strikes on Iranian military targets while maintaining more than 50,000 U.S. troops across the Middle East.

Iranian state-affiliated media also reported strikes in southern Iran, while the Islamic Revolutionary Guard Corps (IRGC) said it had disabled two supertankers in the Strait of Hormuz, accusing them of violating navigation warnings.

The IRGC warned that continued military activity in the region could delay the reopening of the strategic waterway and disrupt global energy supplies.

The heightened geopolitical tensions pushed West Texas Intermediate (WTI) crude oil above $80 per barrel, reinforcing a broader risk-off mood across financial markets and placing additional pressure on cryptocurrencies such as XLM.

Futures market data indicates traders are becoming increasingly cautious on both assets.

According to CoinGlass, XLM open interest dropped to approximately $182.21 million, extending the decline from elevated levels recorded in June.

Falling open interest alongside declining prices often signals that traders are closing positions rather than opening new ones, reflecting weakening market participation and reduced confidence.

Funding rates have also turned negative for XLM and now read -0.0021%. Negative funding rates indicate that short sellers are paying long-position holders, highlighting increased demand for bearish positions in the perpetual futures market.

Stellar (XLM) price analysis: Momentum remains weak

Stellar also continues to struggle as it trades near $0.179, below its major moving averages.

Current resistance levels include the 50-day EMA at $0.186, the 100-day EMA ($0.190), and the 200-day EMA ($0.196)

The RSI remains near 41, reflecting subdued momentum, while the MACD continues to trend in negative territory, suggesting buyers have yet to regain control.

The first major support is located near $0.177, followed by the 78.6% Fibonacci retracement level around $0.173.

If bearish momentum strengthens, XLM could decline toward a broader support zone near $0.142.

Should buyers return, resistance awaits at $0.186, $0.190, and $0.196, with additional upside barriers near $0.200, $0.218, $0.237, and $0.260.